The attempt to sideline anti-austerity politics sent shock waves through Europe, but was largely ignored in Brussels, where protecting shaky austerity plans from democratic upheaval seemed paramount.

Ameera David of RT’s Boom Bust warns Portugal is not out of the woods yet: "This new alliance rejects the austerity drive which means we could see a huge realignment in fiscal policies. It’s also unknown what kind of implications this move will have on Portugal's EU standing."

While the socialist party has argued it will respect the policies of the Eurozone, the PS will now be working with two parties that want to repeal pro-market reforms. In fact, the communist party has openly campaigned to leave the Euro.